26th September 2008 – Rosaleen Blair, CEO and founder of Alexander Mann Solutions (AMS), the leading provider of global Recruitment Process Outsourcing (RPO), gave a speech yesterday on the future of the RPO industry. Blair, who is widely credited with pioneering RPO in Europe, was speaking at the inaugural Recruitment Process Outsourcing forum at the CCT venue Canary Wharf, London. RPO is a rapidly expanding industry: an average annual growth of 37% is expected over the next two years (BPO Analysts Nelson Hall) and global sourcing advisory firm TPI predicts that the global RPO market will be worth up to $15 billion within five years.
Whilst the RPO industry’s development is strong, Blair’s speech outlined some of the fast-changing and diverse influences on its direction:
- Continued globalisation and demographic shifts, particularly in skills and education, are creating a global talent pool for companies to tap into, along with the need for recruitment and internal mobility policies to support the change
- Rapid pace developments in technology and social interactions are continuing the shift in candidate behaviour and expectations, creating a need for the productive and cost efficient use of web 2.0 technologies for attracting Generation Y
- The need to balance the current economic climate and a drive for financial savings with a broader focus on the performance and strategic benefits that can be gained from a successful outsourced relationship
- The capability of RPO providers to support clients who are insourcing their recruitment – working with them to design the ideal recruitment function, providing transformation and change management expertise, and giving them market knowledge, strategic support and consulting whenever its needed
The market also faces a number of new entrants, from Business Process Outsourcing (BPO) specialists and recruitment or staffing companies, to technology providers and even traditional advertising agencies. To respond to increasing competition, Blair believes RPO companies must make their services broader, more flexible and more client-centric. She commented, “RPO providers today need to recognise that a ‘one size fits all’ approach isn’t going to be successful. Providers need to listen to the different demands of their clients – whether a global investment bank, a European technology company or a UK-based SME – and provide innovative services that meet their needs.”
Blair finished by emphasising to the forum that the future of RPO lies beyond its current scope of services, with a provision of expertise that’s broader and deeper. “I started Alexander Mann Solutions because I wanted to put recruitment on the board agenda,” Blair said. “In building a business dedicated to RPO, we led the focus on transactional metrics that improve performance, such as time to hire, cost per hire and reduced attrition rates. However, I believe we’re moving to a future where RPO providers will only be as successful as the brands we build and the business intelligence we provide. I believe we’ll get to a place where success is measured not by our own performance, but by the performance of the people we bring in, and the impact they have.”